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Vol 11. No.28

Economic Overview

	Current	+/-	Movement
$AUS/$US	87.46	+0.60
Cash Rate	3.75	Steady
90 Day Bill	4.19	+0.03
10 Year Bond	5.450	+0.065
ASX 200	4513.4	+8.3

NSW Property

North Strathfield development site sale (AFR Pg.54)

• Better Buildings has purchased a mixed-use development site at 167 – 173 Parramatta Road, North Strathfield for $3 million ($1,944/m² or $100,000/unit).
• The 1,543m² island site backs on to the M4 freeway and has an existing DA for 30 x 2 bedroom units and 3 shops which expires in April.

60 Martin Place update (AFR Pg.48)

• Martin Place Property Fund, a closed end fund managed by Investa Property Group, is close to selling a 50% share in 60 Martin Place, Sydney for approximately $95 million ($6,821/m²) on a yield just over 8%.
• The purchaser is Gwynvill, the Tieck family’s investment company.
• The A-Grade, 30 storey, 27,855m² building was refurbished in 1999 and has a 4.5 star NABERS rating.
• Investa Property Group will retain a 50% share in the property.

Wetherill Park industrial sale (AFR Pg.54)

• NSW Trust has purchased a vacant industrial property at 125 Cowpasture Road, Wetherill Park for $4.1 million.
• The 5,002m² ($820/m²) property has a 3,282m² ($1,249/m²) building.

Port Macquarie industrial sale (AFR Pg.54)

• An industrial property at 12 Denham Street, Port Macquarie has sold for $1.1 million to an owner occupier.
• Improvements to the 4,000m² ($275/m²) site includes a 600m² ($1,833/m²) factory and concrete hardstand.

Queensland Property

Salacia Waters update (AFR Pg.55)

• Lotte Engineering and Construction, one of Korea’s largest construction firms, and Benjamin Shin have started selling stage 1 of the $650 million Salacia Waters at Paradise Point .
• The development will comprise 470 units and villas, shops, restaurants, pools, a gym and a 72 berth marina. Only purchasers within the development will have the option to acquire a berth.
• Units start at $430,000, however, the cheapest unit sold to date was $660,000.
• Stage 1 settlements are due by the end of the year.
• Up to 30% of the sales are expected to be to buyers from South Korea, Japan, China and Singapore.

Chancellor Village sale (AFR Pg.54)

• The Chancellor Village retail complex on the Sunshine Coast has sold for $7.55 million to a private investor reflecting a yield of just over 8%.
• The complex contains 13 tenants including ANZ, Video Ezy, Eagle Boys and Subway.
• The 4,801m² ($1,573/m²) site has a GLAR of 1,375m² ($5,491/m²) and 73 car spaces.

Sheraton Mirage Resort sale update (AFR Pg.53)

• Two key investors in the Sheraton Mirage Resort on the Gold Coast are refusing to sell the property for $62.5 million resulting in the lead mortgagee taking legal action.
• The 283 room hotel was constructed in 1987 and needs approximately $25 million spent on refurbishment.
• The total average room rate declined from $274 in 2006 to $246 in 2009.
• The occupancy rate fell from 62.4% in 2007 to 56% in 2009.
• The property was valued at $69 million in mid 2009 and the land was valued at $41 million in June 2008.

Victoria Property

Hawthorn East development site purchase (AFR Pg.49)

• Woolworths has purchased 740 – 742 Toorak Road, East Hawthorn from Leighton Properties for $21.93 million ($7,310,000/ha).
• The site was the former Gas & Fuel Corporation of Victoria’s Tooronga gasometer. The holding tanks have been converted into an underground car park.
• Woolworths is reviewing which of their retail brands will occupy the 3 ha site.
• Leighton Properties had previously planned to develop a 23,000m² bulky goods retail precinct and then an office project on the site.

Victoria Tower update (AFR Pg.55)

• Lotte Engineering and Construction and City Plan Partners have sold 90 of the 220 units in Victoria Tower at Southport.
• The 35 storey project is designed for the over 50 years market.

Melbourne warehouse sale (AFR Pg.54)

• A new industrial building at 34 Buys Court, Derrimut has sold for $4.05 million.
• The 9,630m² ($421/m²) site has a high clearance 4,643m² ($872/m²) office/warehouse.
• The vendor, Nikstan Constructions, sold 40 Buys Court for $4.175 million the previous week.

Tullamarine warehouse sale (AFR Pg.54)

• A private investor has purchased a 10,275m² warehouse in Tullamarine for $8.8 million ($856/m²) on a yield of 8.75%.
• Improvements to the 17,321m² property include a building constructed in the 1990s with double storey offices, on-grade and recessed loading docks and 4 covered loading areas.
• The property is located 3 km south of the Melbourne International Airport and is leased for 10 years to Hellman Worldwide Logistics for $770,625 p.a.

Westlink Business Park update (AFR Pg.56)

• Over the last 3 months developers and owner occupiers have purchased more than 20 serviced industrial lots in Leighton Holdings Westlink Business Park in western Melbourne.
• The total value is $12 million or $175/m².

Melbourne retail sale (AFR Pg.54)

• A 2 storey retail property on Brunswick Street, Fitzroy has sold for $1.39 million to a local investor reflecting a yield of 3.86%
• The property has rear vehicle access and is leased for 5 + 5 years to a fashion retailer. There is also a small bedsit at the rear of the property which will be occupied by the tenant for $6,500 p.a.
• The property returns $53,698 p.a.

Mildura casino proposal (AFR Pg.48)

• John Haddad has submitted a formal proposal to the Victorian Government to construct a $300 million to $400 million casino and hotel complex next to the Grand Hotel at Mildura
• The design includes a 220 room hotel, convention centre, a health resort and restaurant areas.

National Property

Residential finance statistics update (AFR Pg.46)

• According to the ABS, the total value of investment housing commitments increased 1.1% over the December quarter
• The total number of construction commitments increased by 0.6% whilst the total value of dwelling finance commitments declined by 0.7%.

Industrial update (AFR Pg.57)

• Rising import numbers, stronger business inventories and manufacturing will assist in supporting tenant demand and rental growth within the industrial market.
• Demand for space is anticipated to increase in 2010 due to the need to restock inventory levels.